James Hardie Share Price Grows

James Hardie Industries [ASX:JHX] has shown positive signs in their share growth of late, slightly increasing by 0.71%.

The industrial goods company has been growing since last year and shows no signs of slowing down.

They are now trading at $22.85 a share and are valued at a $10.089 billion market cap.

James Hardie was founded in 1888, and specialises in industrial goods. It operates across four different sectors which offer a variety of materials.

A stable start to 2018

James Hardie’s consistent share increase stems from its profit guidance and accelerated earnings in the US market.

Hardie has managed to pay off some of its debt, and increase some of its income tax expenses.

They succeeded in achieving healthy percentage earnings for its US fibre cement business during the end of last year.

High net prices and volume growth have prompted the North American fibre division to grow significantly.

SBS news reported that CEO Louis Gries stated:

The capacity constraints which arose in the prior fiscal year dampened our demand in fiscal year 2018, despite our capacity increasing compared to the prior corresponding periods.

Expectations and future outlook

James Hardie management predict a full year adjustment of net profit going up to US$275 million.

They expect growth to be steady in the US housing market by fiscal 2018.

Australian net sales are also expected to follow the trending line of growth, particularly within the eastern states of Australia.

James Hardie’s media release reported that CEO Louis Grise also stated:

Our North America fibre Cement Segment for the quarter and nine month period delivered top line growth of 7% and 6%, respectively, driven primarily by higher net prices and modest volume growth. Our exterior volume remains below our expectations, however we continue to improve quarter to quarter, and grew in line with our market index in the current quarter.

Their primary expectations are in North America, with expectations of improvement throughout the year.



Ryan Clarkson-Ledward,
For Money Morning

PS: Aussie small caps are known to be small…and very fast. They can easily make a significant turn over in a short amount of time. Sam Volkering from Money Morning knows all the ins and outs of small caps. And his free report ‘The “At Home” Investors Guide to Profiting from Australian Small-Caps’ pinpoints all of the details you need to know.

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor of Australian Small-Cap Investigator, a stock tipping newsletter that hunts down promising small-cap stocks by dissecting the latest events affecting the world.

To find out more about the publications Ryan works on and how you can subscribe, please click on the corresponding link here:

Money Morning Australia